CH4 Flashcards
Opportunities are a firm’s distinctive competencies that cannot be easily matched or imitated by competitors.
F
The process of performing an internal audit, compared to the external audit, provides more opportunity for participants to understand how their jobs, departments and divisions fit into the whole organization.
T
An internal audit task force of managers could be charged with determining a specific number (usually 10 to 20) of the most important strengths and weaknesses.
T
Proponents of the resource-based view argue that external factors are more important than internal factors for a firm in achieving and sustaining competitive advantage
F
The basic premise of the research-based view is that the mix, type, amount and nature of a firm’s internal resources should be considered first and foremost in devising strategies that can lead to sustainable competitive advantage.
T
The subtle, elusive and largely unconscious forces that shape the workplace are captured by the organizational culture.
T
Cultural products include values, beliefs, stories, and language.
T
Metaphors are handed-down narratives of some wonderful event that are based on history but have been embellished with fictional detail.
F
A ritual is a standardized, detailed set of techniques and behaviors used to manage anxieties.
T
10) For a resource to be valuable, it must be either rare, hard to imitate, or not easily sustainable.
T
11) Linkages between a firm’s culture and strategies often determine success.
T
12) Resources that are common are never considered valuable.
F
The RBV theory asserts that it is advantageous for a firm to pursue a strategy that is not currently being implemented by any competing firm.
T
- Some companies are equally strong (or weak) in all areas of their business.
F
Objectives and strategies are established with the intention of capitalizing upon external strengths and minimizing weaknesses.
F
The internal analysis is critically important in the Arab world as upbringing and socialization may induce executives to overestimate strengths and weaknesses
T
- Within large organizations, each division has certain strengths and weaknesses.
T
- Building competitive advantages involves taking advantage of distinctive competencies.
T
- Few successful corporations give considerable attention to both external and internal analysis.
F
Generally, in the Arab world, the internal capacity to assess external environments and explore their trends is lacking.
T
Senior Arab executives should give priority to internal capacity-building processes and encourage creative rethinking of strategic initiatives and external trends.
T
Unlike the external assessment, the internal assessment does not require gathering and assimilating information about the firm’s functional areas.
F
As long as the strategic-management process is overseen by strategists, there is no need for managers and employees from different functional areas to work together to provide ideas or information.
F
Not recognizing and understanding the relationships among functional areas of business can be beneficial to strategic management.
F
Government and nonprofit enterprises have traditionally placed much emphasis on relationships among the business functions.
F
For strategies to succeed, a coordinated effort among all the functional areas of business is needed.
T
- According to RBV theorists, when other firms are unable to duplicate a particular strategy, then the focal firm has a sustainable competitive advantage.
T
- Common resources are not valauble to firms.
F
The RBV theorists say if many firms cannot easily obtain or imitate particular resources then those resources will ensure a competitive advantage.
T
Understanding both external and internal factors and, more importantly, understanding the relationships among them, will be the key to effective strategy formulation.
T
The definition of ‘organizational culture’ emphasizes only the importance of external factors in making strategic decisions.
F
- As culture is remarkably resistant to change, it rarely has any effect on a firm.
F
Since most firms in the Arab world are family-run businesses, organizational culture seems to have evolved rapidly.
F
The culture of family-owned businesses may experience profound changes once the founder has passed away
T
An organization’s culture has no obligation to support the collective commitment of its people towards a common purpose
F
14) An organization’s culture compares to an individual’s personality in the sense that no two organizations have the same culture and no two individuals have the same personality.
T
At Google the culture is very rigid, while in contrast the culture at Proctor & Gamble is very informal.
F
Established companies are coming to realize that their next generation of potential customers spends more time online than watching TV.
T
17) While interesting, organizational culture does not significantly affect business decisions.
F
Allocating resources is one of the five basic activities (functions) performed by managers.
F
The only certain thing about the future of any organization is change.
T
Even if a firm’s culture is not supportive, strategic changes may still be effective or even productive.
F
- An organization’s culture should infuse individuals with enthusiasm for implementing strategies.
T
- An assessment of resource capabilities is crucial for the survival and growth of the firm.
T
Managers seek to maximize strengths and minimize weaknesses while effectively seizing opportunities and avoiding or neutralize threats.
T
SWOT is the second most common method in evaluating a company’s capabilities in the context of a dynamic marketplace.
F
Value chain analysis aims to identify where low-cost advantages or disadvantages exist anywhere along the value chain from raw materials to customer
service activities.
T
- The combined costs of all the various activities in a company’s value chain define the firm’s cost of doing business.
T
- Value chains tend to be similar across different industries and firms.
F
More and more companies are using VCA to gain and sustain competitive advantage by being especially efficient and effective along various parts of the value chain.
T
Probably the easiest part of benchmarking, is gaining access to other firms’ value chain activities with associated costs.
F
- In preparing as IFE matrix, qualitative estimates are usually sufficient.
F
- The IFE matrix provides important information for strategy formulation.
T
20) Organizing is the cornerstone of effective strategy formulation.
F
Planning should be performed mostly by middle management and then presented to top management for analysis and approval.
F
The controlling function of management is especially important for effective strategy evaluation.
T
The purpose of organizing is to achieve coordinated effort by defining task and authority relations
T
24) Motivation is one explanation why some people work hard and others do not.
T
25) of organizing is included in human resource management.
F
